A few days before Valentine’s Day, Bumble, the popular American dating app after Tinder, where women are taking the first step, made a remarkable IPO on Thursday, valuing the online dating site at around 13 billion of dollars.
The company’s shares were listed at $ 76 on the Nasdaq, well above its IPO price of $ 43 per share. The Austint, Texas-based Bumble company operates two apps, Bumble and Badoo, and claims more than 40 million monthly active users globally. Bumble alone had 12.3 million monthly active users in September 2020, of which almost 9% were paying users, according to Forbes. Bumble Inc was started in 2014 by Whitney Wolfe Herd, a 30-something and former president of marketing for competitor Tinder.
Since the pandemic, the success of dating apps has not been denied. Bumble generates income primarily through premium subscriptions. The company reported revenue of $ 417 million in the first nine months of 2020, with a net loss of $ 117 million (or € 96 million).
Bumble also does professional networking
In 2019, Blackstone paid around $ 3 billion for acquire a majority stake in MagicLab, which at the time had the Bumble and Badoo apps. They employ nearly 600 people at its Texas headquarters and have offices in several European cities.
According to Reuters, Bumble plans to use the $ 2.2 billion from the IPO to repay debt, finance international growth and make acquisitions.
Bumble stands out for the diversity of its offer: in addition to romantic encounters, professional and even friendly meetings are also offered. The Bumble Bizz option emphasizes networking. Without revolutionizing professional meetings compared to its competitors, the iOS and Android application offers a clear interface and targets its communication on “women first”, a rather rare discourse in the business world.